NSB 9-month pre-tax profit tops Rs. 10 b mark with 12% growth

Savings giant NSB has recorded a Profit Before Tax (PBT) of Rs. 10.2 billion for the nine months ended 30 September, a 12% increase as compared with the same period last year. 

The Bank said growth in traditional lines of business, enhanced Fee based income coupled with lower impairment provisioning due to a significant improvement in asset quality been the contributory factors leading to this growth.

The bank reported an operating profit of Rs. 12.3 billion for the nine months period recording a growth of 13% when compared to Rs. 10.9 billion operating profit reported for the correspondence period last year. 

The Profit After Tax (PAT) was reported at Rs. 7.4 billion for the nine months ended 30September which is a notable growth of 32% compared to Rs. 5.6 billion PAT recorded during the same period last year.

 These profits were recorded despite lower net interest margins due to a rising market interest rate scenario.

Interest income of the bank grew by 8% to reach Rs. 62.9 billion while interest expenses recorded an increase of 15% mainly due to upward repricing of its term deposit portfolio on account of interest rate pressures.

The bank’s loans and advances portfolio grew satisfactorily helped by a growth in retail loans of 17% as compared to the previous year. Another key highlight been the significant decline of gross Non Performing Loans (NPL) ratio to 1.8% as at 30 Septemberfrom 3.5% at the start of the year.

The bank has already contributed Rs.14.4 billion to the Government in the form of taxes and levies for the year 2016. A significantly higher amount as compared with last year.

The total assets of the bank stood at Rs. 886 billion by end of 30 September indicating a growth of 5%. During the period under review, total deposit base of the bank grew by 7% to reach Rs. 638 billion.

The bank’s Tier 1 capital adequacy ratio stood at 11.6% while total capital adequacy was 10.6% as at 30 September. Those ratios were 17.9% and 16.4% as at 31 December 2015.

A public awareness raising programme which commenced as a main CSR project during the month of October under the theme ‘NSBeco – conservation of electricity for a thrift resilient family’ can be stated as one of the most significant events organised by the bank in commemoration of this year’s World Thrift Day.